Getting Every Ton of Emissions Right

An Analysis of Emission Factors for Purchased Electricity in China

This working paper identifies common errors when accounting for greenhouse gas emissions from purchased electricity in China. It provides solutions and recommendations for policy makers and corporate users.

Executive Summary

In China, there are widespread errors on emission factors used to account for indirect emission from purchased electricity at the organizational level. Based on analysis of this working paper, if the wrong emission factors are used to account for purchased electricity in 2010, it could lead to over-estimation up to 49 percent in GHG emissions.

Authors of this working paper argue that using inappropriate emission factors for purchased electricity, even if all companies in the same country using them consistently, will result in inaccurate accounting results and provides distorted signals, therefore misleading analysis and decisions on GHG mitigation.

Based on requirements and guidance from the most commonly used corporate GHG accounting and reporting standards, namely the GHG Protocol Corporate Accounting and Reporting Standard (revised edition) and ISO 14064-1:2006 Specification with Guidance at the Organization Level for Quantification and Reporting of Greenhouse Gas Emissions and Removals, authors articulate what shall and shall not be included in the calculation of emission factors for purchased electricity.

This working paper provides calculated default emission factors to use for regional grids in China as well as the calculation process in detail. It also provides recommendations for policy makers, research organizations, consultancies and corporate users regarding the development and usage of emission factors for purchased electricity in China.

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Blog

Chinese emissions trading pilots emerge as environmental and climate issues reach the top of the Chinese agenda. The authors discuss emissions trading in China, from the field. Editor's note: This blog post was originally posted on ChinaFAQs.

Confronted with a cooling economy and global headlines declaring an "Airpocalypse", China faces challenges on multiple fronts. While many people are quick to point out the hurdles, the reality is that its leaders are moving ahead with significant policy measures and reforms. If successful, these actions will not only help drive China's economic development, they will address another mounting threat: climate change.

The latest report from the Intergovernmental Panel on Climate Change confirms the risks of climate change and humans' central role in it. China is no less vulnerable. One-third of its coastline is highly vulnerable to rising seas that will probably lead to the relocation of coastal communities. China's agricultural production - including rice, wheat and corn - could fall dramatically within a few decades due to shifts in precipitation and soil quality. Health impacts, including malaria and other infectious diseases, are also expected to mount as global temperatures rise.

As China moves to tackle issues related to the economy, pollution and urbanisation, each carries opportunities to shift the country's emissions trajectory and make progress on climate change.

China launched its first pilot emission trading program this past June. This development is potentially a major marker in the country’s efforts to reduce greenhouse gas (GHG) emissions.

The Shenzhen Emissions Trading Scheme (ETS) program will cover some 635 industrial companies from 26 industries. This is the first of seven proposed pilot GHG cap-and-trade schemes in China, which the country has been developing since 2011. Besides Shenzhen, four of the other pilots are expected to start trading this year.[^1]

In 2010, these 635 industrial companies emitted 31.7 million tons of carbon dioxide and contributed 59 percent of the Industrial Added Value (gross domestic product (GDP) due to industry) and 26 percent of Shenzhen’s GDP.